GBPUSD is attempting to break through the 20-day simple moving average (SMA), while maintaining above the 1.3670 support level, which is also the 200-day SMA. The MACD oscillator has moved above the trigger line and is now trading below zero; nevertheless, the RSI is hovering near the neutral threshold of 50.
The psychological figure of 1.4000 could provide immediate resistance to upward moves before testing the 35-month high of 1.4238. Beyond this stumbling block, the 1.4345 resistance level from January 2018 may come into focus.
A drop lower, on the other hand, might revisit the 200-day SMA at 1.3670 before falling towards the 23.6% Fibonacci retracement level of the upward wave from 1.1405 to 1.4238 at 1.3577. Penetrating this line too, the market outlook could turn to negative, testing 1.3435 and the 38.2% Fibonacci at 1.3180.
Overall, GBPUSD has been in a trading range over the last five months, with an upper boundary the 1.4238 barrier and a lower boundary the 1.3670 support. Any advances above 1.4238 could shift the outlook to bullish, though a break below 1.3670 could switch the broader window to bearish.
